Augustine Medical & Workers Indicted in Fraud Sting

Fairview Heights, IL – The government has announced its first indictments under Operation Headwaters in Fairview Heights Monday, which it's calling the largest healthcare fraud stingoperation ever.

Minnesota-based Augustine Medical - a company that makes a wound-warming device -two employees and an independent contractorwere indicted on federal charges Monday.

US Attorney for the southern district of Illinois Miriam Miquelon said the government set up a front business in Swansea to check out companies possibly engaging in Medicare fraud.

She said indictments relating to other companies are expected over the next months.

A company spokesman says Augustine does not feel it has done anything wrong. The company says its product provides an optimum healing environment for certain types of wounds. And it says it hired a consultant to help them with Medicare billing issues.